“We expect this impact to magnify in June 2017 until the customers have a clear understanding of the final pricing post the GST rollout,” he added.

Raja further said the company expected the government to review the proposed tax structure, under GST regime, for greener vehicles such as electric, hybrid to achieve cleaner mobility solutions.

“We do hope the government will continue to extend the prevailing tax benefits for greener technologies which are purely based on the fuel efficiency and eco-friendliness,” he added.

Under the proposed GST rates, hybrid vehicles are to be taxed at 28% with 15% cess, same as that of other large luxury cars and SUVs. Under the GST, the tax incidence on hybrid vehicles will go up to 43% from the current level of effective tax rate of 30.3%.